Blaby leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Blaby tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Blaby you should see if your lease has between seventy and ninety years left. There are good reasons why a Blaby flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold premises in Blaby with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Blaby can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Blaby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Mason was the the leasehold proprietor of a conversion flat in Blaby being sold with a lease of a few days over 61 years remaining. Mason on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Dr I Phillips moved into a garden flat in Blaby in October 1998. The question was if we could approximate the premium would likely be for a 90 year lease extension. Similar homes in Blaby with 100 year plus lease were worth £168,800. The mid-range amount of ground rent was £60 billed yearly. The lease finished in 2080. Having 55 years left we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
In 2009 we were phoned by Mrs J Alexander who, having moved into a purpose-built apartment in Blaby in September 2010. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Identical residencies in Blaby with 100 year plus lease were valued around £235,200. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated on 20 January 2091. Given that there were 66 years unexpired we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.